A firm currently is an all equity firm with a market value of $200,000,000. The firm is

contemplating dramatically increasing its leverage by selling $150,000,000 in bonds and

using the proceeds to repurchase equity. The bonds promise a 10% interest payment at the

end of each year. The bonds are structured so that the firm will pay exactly $50,000,000 of

the principal back at the end of the third year, sixth year, and ninth year, and thus the bonds

will be fully retired at the end of the ninth year. The corporate tax rate is 35% and there are

no personal taxes. What will the market value of the firm be the moment after this deal is

announced?